May 9 (Bloomberg) -- American Apparel Inc. settled a U.S.
Federal Trade Commission case accusing the retailer of falsely
claiming it was abiding by an international privacy program for
transferring consumer data.

The company deceptively claimed it held a current
certification under the safe harbor privacy framework between
the U.S. and the European Union, the FTC said in a statement
today. The framework is a voluntary program that allows U.S
companies to transfer consumer data from the EU in compliance
with EU law.

“The FTC is committed to making sure that when companies
claim they’re participating in the U.S.-EU safe-harbor
framework, they’re abiding by the terms of the program,” said
Jessica Rich, the director of the FTC’s bureau of consumer
protection.

The FTC’s effort to crack down on privacy violations by
companies includes settlements with technology giants Google
Inc. and Facebook Inc. Yesterday the agency settled claims that
Snapchat Inc. deceived users by falsely promising its photo
messages disappeared and misrepresented its data collection
practices.

American Apparel, based in Los Angeles, is again in full
compliance with the program, Peter Schey, a lawyer for the
company, said in a statement.

“No customer was harmed in any way during the brief period
when the company’s annual certification unintentionally lapsed
but the company’s website indicated it was current,” he said.

The retailer also falsely claimed it was current with the
U.S.-Swiss safe-harbor framework, the FTC said. Under the
settlement, the company agreed not to misrepresent its
participation in any privacy or data security program sponsored
by the government.